The BRICS in the international money and debt capital markets

Abstract

This paper discusses the role of the BRICS countries as strong players in the global economy and is aimed at identifying major obstacles to their economic growth. It examines money and debt capital markets in the BRICS and their attractiveness to foreign investment in 2006-2016. The research methodology is based on a comparative analysis of financial market indicators. During the period 2006-2007 the BRICS countries were becoming increasingly attractive for foreign direct investment, mostly due to their natural and labor resources. Modernization reforms, carried out in the 80s, also stimulated competition and enhanced standards of living. The BRICS countries achieved higher GDPs, promoted production growth and achieved a positive balance of payments. Since 2007 the BRICS have not only attracted investment, but have been investing in the developed economies. However, the analysis also revealed some fundamental economic weaknesses, originating in the global economic crisis. The most serious of these are increasing financial risks and the destabilization of the money markets. The post-crises period is characterized by the struggle for stability and the creation of new infrastructure (New Development Bank and Pool of Contingent Reserve Arrangement).